Sonoco Q3 Sales and Adjusted EPS Miss; $829M Impairment Drives Net Loss
SON sits 18% above its 52-week low of $38.65.
Summary
Sonoco's Q3 net sales fell 4.2% to $2.04 billion, short of the $2.08 billion consensus, and adjusted EPS of $1.67 missed the $1.76 estimate. A $829 million goodwill impairment pushed the company to a $732 million net loss, or $7.36 per share, and operating profit to negative $638 million. Management blamed drought in Europe and the U.S. for lower crop yields and soft food can demand, while higher selling prices offset inflation and tariffs but not enough to save volumes. Guidance for 2026 calls for net sales of $7.20-7.40 billion, adjusted EPS of $5.30-5.50 and adjusted EBITDA of $1.20-1.25 billion — the volume weakness and impairment are the two items that matter for the thesis.
At the time of this announcement, SON was trading at $45.75 on NYSE in the Manufacturing sector, with a market capitalization of approximately $5B. The 52-week trading range was $38.65 to $60.67. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.